FCC’s Genachowski seeks hearing on AT&T merger

Nov 22nd 2011
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FCCs Genachowski seeks hearing on AT&T merger

FCC chairman Julius Genachowski issued a draft order this morning that demands a hearing to take the AT&T / T-Mobile merger before an Administrative Law Judge. This type of hearing, resembling the only held for the attempted buyout of DirecTV by EchoStar in 2002, could be held once the dept of Justice’s litigation is complete and would definitely be another blockade for AT&T to push through. In accordance with the FCC, the Chairman’s order is awaiting final approval from the Commission at a later date, and will not be made public until that point. If the order gets the golf green light and a hearing is held, it will be done so like an ordeal — one involving cross examination, witnesses, rules of evidence and an excellent ‘ol fashioned two-sided duel.

It’s no secret that the FCC has raised concerns over the proposed merger , and pushing this order forward understandably reflects that. If truth be told, during a conference call with media, the FCC expressed fears that the deal would violate antitrust standards and is not within the public interest, and the Commission cited records showing it will ultimately end in a lack of jobs, contrary to AT&T’s claims. Naturally, this indicates there’s yet one more hoop for the carrier to move through before it could actually hope to pick out up T-Mobile, and it is a biggie; with the FCC and DoJ holding steadfastly against the purchase, the GSM carrier’s probabilities of success appear like slimming significantly. Head past the break to look AT&T and Sprint’s reactions to the scoop.

AT&T’s statement:

The FCC’s action today is disappointing. It’s an additional example of a central authority agency acting to forestall billions in new investment and the creation of many thousands of recent jobs at a time when the u. s. economy desperately needs both. At the moment, we’re reviewing all options.

Sprint’s statement:

As Chairman Genachowski said in August when the Justice Department filed its antitrust lawsuit against AT&T, the record before the FCC presented, “serious concerns concerning the impact of the proposed transaction on competition.” That record is complete and greater than justifies moving this matter to an Administrative Law Judge for a hearing. We appreciate Chairman Genachowski’s leadership in this issue and wait for the FCC moving quickly to adopt a powerful hearing designation order.

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